Sublime

Burton Malkiel, who was kind enough to write the foreword for this book, has written one of the best: A Random Walk Down Wall Street. Rather, this chapter is about what a basic understanding of markets—the ideas covered in the first two chapters—can tell us about personal investing. Any investment strategy must obey the basic laws of economics, jus

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

The key to thinking like an economist is recognizing the trade-offs inherent to fiddling with markets.

(Progressive taxes, such as the income tax, fall more heavily on the rich than the poor.)

The more productive we are, the richer we are.

Economics starts with one very important assumption: Individuals act to make themselves as well off as possible.